Today on the BiggerPockets Podcast we sit with Chad Carson, a full time real estate investor from Clemson, South Carolina. Chad brings expertise in a TON of areas including everything from fix-and-flips to creative finance, property management to buy-and-hold.

This show explores how to use real estate as a means to design the lifestyle you really want.

Connect with Chad’s:

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About Author

Brandon Turner (G+) is the BiggerPockets.com Senior Editor and Community Director. He is also an Active Real Estate Investor (Flips, Apartments, and Buy-and-Hold), Entrepreneur, World Traveler, Third-Person Speaker, and Husband. Come hang out with him on Twitter!

– Getting to Yes is a must read. Glad you mentioned it. This book has made me tons of money and lots of goodwill over the years.

– Also loved your emphasis on integrity. Residential real estate can lead people into a trap of maximizing a deal vs. doing the right thing with a long-term focus. Goes for many stakeholders in the deal, right? Private lenders, contractors, etc.

Chad, I truly enjoyed this podcast. It wasn’t just about “doing deals” and making as much money as possible, but it was obvious that you have thought deeply and strategically about your business. I’m a newbie, and your comments really made me think and helped me solidify some of my own goals. I appreciate your sharing with all of us.

Hey Jeff, that is the biggest compliment you can give me. Thank you. I am glad our conversation made you think and helped you with your own goals. That is what it’s all about. Best of luck to you! Hope we can stay in touch on BP.

First, it coincided with my first reading of The E Myth Revisited. In there, Gerber talks about the “Primary Aim” of the person thinking about their business. Chad, I liked how you revisited where the business was heading and reminded yourself about the “Primary Aim” in your own lives. It wasn’t to be driving around in that big truck… Loved it.

Second, the business model Chad created is similar to my own business plan of immediate cash through buy and sell (either wholesale or flipped) and investing a portion of the proceeds into cash flow properties. I appreciated hearing how you were doing this to build long-term wealth in addition to satisfying your current needs.

Ron, I love the E-myth. I am glad you brought that up. It was a big influence early in my business and during the “rethink” phase where we changed directions.

Yeah, I love the commentary nature of flipping for chunks of cash and reinvesting into income properties. Awesome you are doing something similar.

A cool variation is to do short term holds instead of flips. Then when you sell you can do a 1031 into an income property or just pay long term capital gains (usually a lower rate) and invest the proceeds. I have found the profit margins to be higher, but you have to get more financing to hold a little longer.

Chad, loved the podcast! Enjoyed hearing your creative financing tactics and really loved the slow down part. Voluntary simplicity is so counter cultural and takes a lot of intentional work, but has huge benefits. Thanks for sharing!

great show! Curious to know if as a realtor you have ever run into obstacles in doing direct mail for flips? I know realtors have things they can and can’t do when it comes to marketing to people for deals, correct? Just curious how that all works out…..

Thanks Jessica. I have not been held back at all with my license. I disclose my license status on all direct mail and on contracts. Hasn’t hurt me. It also helps that I don’t actively list deals or represent buyers, so there is no conflict of interest. It is a clear role when I talk to sellers: I want to buy your house, not list it. I do happen to have my license, but I am acting on my own behalf.

I just listened to podcast #84. I got a great deal of information about relationship building and ethics from Chad Carson’s commentary. Just wanted to thank you for expanding my understanding of my role in interacting with financial backers. This was a great podcast. Thanks guys. Well done – don’t know if my commentary added any value to you or the other listeners, but you have certainly added value to me. John Schaub’s book is one I plan to read ASAP.
@ Brandon that it was great meeting you at the NYC Bigger Pockets Meet Up on August 19th, and seeing that you are as great in person as you sounded online. Thanks again!

Great Podcast, The title didn’t give it justice. Had a little bit of everything packed into this one. Very important to protect the investors, Your rep is so important in this business. I have yet to let an investor lose money on a deal and its nice to be able to still say that. Issues have come up, one investor didn’t make anything “but didn’t lose either”, he wasn’t real happy and thats understandable. It happens, but at least it didn’t go negative. I have on the other hand have an investor get upset for only making 6%. That was frustrating, not to mention it was done in 3 months so actual returns were much higher around 25 – 30 with the points. I thought I had explained everything well enough. Everything was written down and he still was upset. Problem was he wasn’t a true investor and when I told him average returns were 15-25% he figured per deal not annualized. (No seasoned investor would be upset here). Im sure he will come around as he continues to learn.

Hey Kevin, good points. It is impossible to make everyone happy all the time. I have learned that too. You pointed out something important about expectations. Your guy who was not happy “expected” to make a lot more, therefore he was disappointed at 6% + points. Keeping expectations realistic and pointing out the other benefits of what you do (safety, passive nature of deal, repeat business, etc) are important. I

had an investor who used to like 10% all the time, but I couldn’t keep him consistently invested at that rate. So we switched to a lower number and got him more consistent. His expectation changed as I showed him the downside of a higher rate.

Thanks for a wonderful podcast! Chad you sound like a brother and I thoroughly enjoyed hearing and learning about your journey. I came away with some new ideas, some very good truths and a desire to serve. Thank You again, I will revisit this one just to make sure we got it all. Tom and Roni.

Yes, Cory. We are still recovering from some of the bad deals of that spree. I had to deal with one today. They are kind of like that bubble gum that sticks to your shoe. You can’t even pry it off with a stick! Just follows me around for years:) but the lessons learned have made all the subsequent deals better and better.

Great podcast!……I just signed up for Bigger Pockets so thanks for directing me here.
I’m most impressed that you get 90% of your funding from private money. These investors and hard to find especially since the Dow was up 30% last year. I agree that you ALWAYS take care of your investor before you pay yourself. I’m still flipping but haven’t purchased a rental for myself. Hopefully, I’ll get into that soon. I always learn something from you…..keep up the good work and GO TIGERS!

Chad….thanks for your willingness to share your experiences with a newbie like me .I gained a lot of insight and information that will help me to be successful in real estates.
What custodians would you recommend to do a self funded IRA in the Carolinas???
thanks

Hi Doris,
I’m investing in SE North Carolina and use American IRA out of Asheville. You can use any IRA administrator in any state, but I like that American is nearby and it’s not uncommon to see them at local REIA meetings, etc. They get to know you and your investment approach and needs.

Hey Chad! As always you were way modest about your successes. You know I’ve been a fan for a long time and attribute my successes as a long term hold investor to you (with some help from studying John Schaub, too!) I really enjoyed this podcast and have a new book to add to my reading list – I haven’t read Getting to Yes yet but now I will. Great to see you here on BP – the REI world needed a place for your prolific and useful writing and insights. Could we block it from reaching my investment area, though? ; )

I enjoyed listening to Chad while I was driving on LA Freeways today. It gave me lots of ideas and new approaches to financing. Thank you Chad for being a real estate professional with integrity. That was refreshing and nice. You’re a good role model. I’ll be in Charleston in November. Planning to “walk some neighborhoods” while I’m there. Thanks again.

Great podcast! Lot of information in different areas of RE plus lessons learned when you have a bad deal and how to be a stand up type of person to eat the loses rather than making your investor take a loss when they are the one who had the faith in you. Great business move!